DeFi

Gauntlet Worried After Curve Hack, Wants To Freeze CRV On Aave V2

Key Points:

Aave starts voting to halt CRV additions on Aave v2, tackling concentration risk after the Curve hack.
DeFi is hit by Vyper-based attacks, and Curve recovers 70% of the $62 million from the July hack.
Curve flags vulnerabilities in the crypto pool and urges asset withdrawal for security.

On August 15, the Aave community took a significant step towards risk management as the governance page announced the commencement of on-chain voting for a proposal that aims to freeze CRV on Aave v2 after the Curve Finance hack.

Scheduled to conclude on August 18, this proposal, reinitiated by DeFi risk manager Gauntlet, seeks to curb the escalating concentration risk associated with the continuous addition of CRV within the V2 market.

The decision to freeze CRV stems from concerns echoing past instances, including the November 2022 proposal and subsequent ones in June and August. The spotlight remains on the address starting with 0x7a16, which corresponds to Curve founder Michael Egorov (Michwill).

Gauntlet’s steadfast rationale for the CRV freeze echoes its earlier standpoints, standing resolute in preventing concentration risks.

In a statement, Gauntlet articulated:

“Our recommendation to freeze CRV collateral on Aave v2 resonates with our unaltered convictions against mounting CRV additions and the associated concentration risks.”

The announcement coincides with the DeFi turmoil that ensued on July 30, stemming from reentrancy attacks exploiting vulnerabilities in various Vyper iterations—an Ethereum virtual machine (EVM)-designed smart contract language.

Amid the turmoil, Curve Finance valiantly recovered 70% of the $62 million pilfered from its liquidity pools during the reentrancy hack. The protocol vowed to compensate users adversely impacted by the event.

In a subsequent revelation, Curve disclosed that its arbitral-tri crypto pool bore the same vulnerability exploited in the July incident. Yet, the platform assured its community that this pool is devoid of potential vulnerabilities.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.